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Design-Bid-BuildProject Structure and Approach

Architect/

Engineer

General

Contractor

PD&E PE Final Design Procurement Construction$ $ $

Owner

Subcontractors and Suppliers

Contractor Selected

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DESIGN-BID-BUILD

Design/Bid/Build systems have the greatest design and construction schedule growth.

Complexity of project

Complies with state procurement statutes- Typically public funds are spent with

the lowest bidder only.

Traditionally used and is a three step design-bid-build  method of procuring design and constructionservices for most capital projects.

This approach allows the owner to determine the exact product before it begins construction.

Step 1 –  is an AE defines the client's needs, designs the project, prepares construction drawings andspecifications, and administers construction. The project is not bid on by contractors until workingdrawings are completed. The important deliverable here is the drawings and specifications because theyserve as the contractual definition of what the contractor is to build.

Step 2 - The design package is then presented to general contractors who bid for the work and engage

subcontractors to provide various aspects of the project. Usually the

lowest bid is selected.

Step 3- At the end of this process you have an engineer’s estimate of costs. 

During the contractor procurement process, contractors may be prequalified and short-listed. Typically, thelow bidder is awarded the work. So, in this scenario, the AE is at the agent end of the spectrum, thecontractor is at the vendor end. 

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PROS & CONS OF DBB

• The process is easy to manage.

• Roles are clear, the process is universally understood.• Since the owner has a defined requirement and a fixed price, it appears prudent.

• However, it’s not the quickest route.

• There is not a fixed price for construction until much work has been done.

•If bids are over the budget, more time and money are lost for redesign. And there liessome of the risk to the Owner.

You can exercise the greatest control over the project, but the risk associated with project

schedule and coordination amongst the parties rests with the Owner.

If the construction cost exceeds the project estimate, the Owner may have to seek more

funds, re-scope the project or redesign to the project’s estimate; costing more time and  

money.

Often, agencies will hire a program management team to manage on their behalf the conflict,

delays and claims, which are not easy to predict or quantify. Ultimately, the owner retains all

the risks.

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REFERENCES

• http://capital.ucsd.edu/process/Overview/Hy

perlinkConstructionDeliveryMethods0404.doc 

• http://thedesignbuildblog.wordpress.com/201

0/08/02/design-build-vs-design-bid-build/ 

• http://www.tysonbuilding.com/images/Selecti

ngProjectDelivery.pdf